Belgium Takes Aim At Misleading Crypto Ads With New Regulations
- Belgium’s Financial Services and Markets Authority (FSMA) is set to implement new crypto ad regulations by May 17.
- FSMA Chairman Jean-Paul Servais emphasized the need for better consumer protection, stating that the organization is ramping up supervision and financial education.
Belgium’s Financial Services and Markets Authority (FSMA) is set to implement new crypto ad regulations by May 17. The move comes after the Official Gazette of Belgium published on March 17, indicating that crypto ads must be accurate and contain mandatory risk information.
Under the new rules, companies that sponsor crypto ads must submit them to FSMA before launching any mass campaign. This means that ads targeting at least 25,000 customers must be submitted to the regulator for review. The purpose of this regulation is to protect consumers and ensure that advertisements for virtual currencies are accurate and not misleading, with compulsory warnings of risk.
FSMA Chairman Jean-Paul Servais emphasized the need for better consumer protection, stating that the organization is ramping up supervision and financial education. He believes that the new regulations will enable the FSMA to check the accuracy and truthfulness of crypto ads.
Market research conducted by FSMA revealed that most Belgian crypto investors are driven by the potential for profits, with 80% being male. Despite the recent collapse of FTX and the subsequent crypto market downturn, investors remain undeterred.
Belgium is the latest European country to introduce new crypto ads regulations. Other countries like the United Kingdom have also imposed restrictions on crypto ads. A former minister of the country Johan Van Overtveldt recently called for a total ban on cryptocurrencies amid the recent turmoil in the banking sector.
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